A Brief Overview of the Bilateral Trade Relationship between Ethiopia & Syrian Arab Republic
· Full name: The Syrian Arab Republic
· Population: 20.7 million (UN, 2011)
· Capital: Damascus
· Area: 185,180 sq km (71,498 sq miles)
· Major language: Arabic
· Major religions: Islam, Christianity
· Life expectancy: 74 years (men), 78 years (women) (UN)
· Monetary unit: 1 Syrian pound = 100 piastres
· Main exports: Oil, gas
· GNI per capita: US $2,750 (World Bank, 2010)
v The following table indicates the Export, Import, Trade balance, Total Trade turn over and annual growth rate between Ethiopia & Syria Arab republic from 2004 up to 2011GC.
Year / Export (USD) / Growth Rate (%) / Import (USD) / Growth Rate (%) / Trade Balance (USD) / Total Trade Turn Over (USD) / Growth rate of Total Trade Turn Over (%)2004 / 49,172.56 / - / 1,009,199.17 / - / -960,026.61 / 1,058,371.73 / -
2005 / 163,690.71 / 232 / 1,069,504.49 / 6 / -905,813.78 / 1,233,195.20 / 12
2006 / 49,998.29 / -69 / 1,424,369.83 / 33 / -1,374,371.54 / 1,474,368.12 / 20
2007 / 923,503.76 / 1,747 / 1,494,584.69 / 5 / -571,080.93 / 2,418,088.45 / 64
2008 / 1,791,966.65 / 94 / 1,701,374.24 / 14 / 90,592.41 / 3,493,340.89 / 44
2009 / 3,588,076.69 / 100 / 1,815,811.86 / 7 / 1,772,264.83 / 5,403,888.55 / 55
2010 / 1,726,185.69 / -52 / 2,645,210.34 / 46 / -919,024.65 / 4,371,396.03 / -19
2011 / 889,568.60 / -48 / 1,825,088.44 / -31 / -935,519.84 / 2,714,657.04 / -38
v The table shows that the trade relationship between the two countries is not as such significant and is also showing a relatively smaller growth rate over the years.
The total trade turnover has increased from about 1.06 million dollars in 2004 to about 5.4 million dollars in 2009 showing a rate of growth of 411%; however, it has declined to USD 2,714,657 in 2011.
According to the above trade data Ethiopia’s export to Syria has been increasing from around USD 49,172 in 2004 to USD 889,568 in 2011 showing a rate of growth of 1,709 %.The following graph shows Ethiopia’s export to Syria from 2004 to 2011. The highest export was in 2009 amounting to 3.6 million dollars.
Since the Ethiopian Economy is an agrarian economy most of the exportable commodities are agricultural & semi processed commodities. Some of the major goods exported to Syria includes:
· Sesamum Seeds ------(USD 6,224,492)
· Coffee ------(USD 1,360,085)
· Natural Gums ------(USD 1,060,650)
The major imported commodities from Syria to Ethiopia include the following:
· Different types of Machineries (USD 1,367,505)
· Electronic appliances (USD 411,031)
· Industrial mono-carboxylic fatty acids (USD 259,972)
· Polyurethanes (USD 222,556)
Ethiopia’s import from Syria has been increasing from around 1 million dollar in 2004 to 1.82 million dollars in 2011 showing a rate of growth of 81%. The highest import was in 2010 amounting to 2.65 million dollars.
Ethiopia’s Import from Syria from 2004 up to 2011
v It is apparent from the table that the balance of trade, in most of the years, remained to be in favor of Syria due to imports of intermediate manufactured goods by Ethiopia.
RECCOMMENDATION
· Since our exports to Syria are agricultural commodities, we have to keep their quality at higher level.
· Given that Syria is an Arab country with a potential purchasing ability, we could have much better market for our Coffee.
· As Oil and Gas are the main exports of Syria, Ethiopia can benefit from a negotiated lower priced Oil and Gas imports from Syria.
· Encourage the Syrian business community to work in partnership with Ethiopian counter parts for mutual benefits in terms of cheap labor, technology transfer, and new market access.
· Create sustainable relationship with the two countries’ business people through active affiliation of the Chambers of Commerce of the two countries through signing of MoU and formulation of JBC.
Syrian Investment in Ethiopia
(Wholly owned, Joint with domestic and other foreign investors)
Summary of Licensed FDI Projects by Syrian investors
(including by joint venture with Ethiopians and other foreign investors)
Since January 1, 1992 - August 24,2012 G.C
Country of Origin / Total
No. of Projects / Capital in
'000' Birr / Permanent
Employment / Temporary
Employment
Palestine/Syria / 1 / 60,000 / 100 / 150
KSA/Lebanon/Syria/Ethiopia / 1 / 30,000 / 100 / 30
Syria / 32 / 420,894 / 1,285 / 796
Syria/Ethiopia / 5 / 26,500 / 287 / 206
Syria/Lebanon / 1 / 5,000 / 50 / 150
Syria/PALESTIN / 1 / 6,750 / 200 / 100
Syria/Sudan/Ethiopia / 1 / 3,500 / 55 / -
Grand Total / 42 / 552,644 / 2,077 / 1,432
Ø Syrians have invested in Ethiopia on projects either wholly owned by themselves or in collaboration with other investors of Ethiopian and Non-Ethiopian origin.
Ø In the last 20 years, Syrians have received investment license for 32 wholly owned projects with a registered capital of Birr 420,894,000 (or USD 24,051,085 @ birr17.5/$).It is expected that this projects generate 1,285 permanent employments and 796 temporary employments.
Ø In collaboration with investors of Ethiopian and Non-Ethiopian origin, Syrians have received investment license for 10 projects with a registered capital of Birr 131,750,000 (or USD 7,528,000 @ birr17.5/$). It is expected that this projects generate 792 permanent employments and 636 temporary employments.
Ø In general, Syrians have taken part in Ethiopia in 42 projects and are responsible in generating 2,077 permanent employments and 1,432 temporary employments with a registered capital of Birr 552,644,000 (or USD 31,579,657 @ birr17.5/$).